"the manufacturing cost on this unit with shifter and linkage is $3865"

Can you define "manufacturing costs"? Does that include R&D or other sunk costs? I am trying to do some math since if your cost to make the trans is $3865, a 9-10% premium does not seem like it should cover your other expenses as well as R&D. I am just curious, what types of costs are lumped into the "manufacturing cost". Thanks Jamie!